Pawnshop Operation

CHAPTER 1
THE PROBLEM AND ITS BACKGROUND
Introduction
Pawnshops have been around in one form or another for the past 3,000 years. They offer services similar to those of modern banking institutions including loans, consignments, and storage. A good pawn broker buys items for a reasonable price and sells them at a discount. The pawn industry is about making money, and that means repeat business and reasonable dealings.
A good pawnshop will carry a variety of items including jewelry, tools, antiques, furniture, knives, guns, crossbows, camping gear, and everything and anything you could imagine being of value and sellable. Some pawn shops even buy and sell cars, motorcycles, and aircraft.
In the Philippines Pawnshop Operation is guided/ covered by Presidential Decree No. 114 Sec. 1-2 as:
This decree may be cited as the Pawnshop Regulation Act, which stipulated according to that: “ It is hereby declared the policy of the State to regulate the establishment of pawnshops and to place their operation on a sound and stable basis to derive the optimum advantages from them as an additional source of credit; to prevent and mitigate, as far as practicable, practices prejudicial to public interest; and to lay down the minimum requirements and standards under which they may be established and do business...”

The word "pawn" comes from the Latin word "pignus," which means to pledge. When someone has an item of worth on which they would like to receive a monetary loan, they take that item to a broker who receives it as a pledge (aka collateral or pawn) in exchange for money. A pawn shop serves as that kind of broker.
Pawn shops have existed since ancient times, and are arguably humankind's oldest financial institution. In China, the history of pawn-broking can be traced back some 3000 years, where it was regulated by Imperial authorities. In India the practice…...

...Unit 34 – Operations Management in Business
(Word Count: 3598)
Jason Hixson
Tel: 01454 281141
Tutor: Mike Brayford
Email: jason@rapidandsecure.co.uk
Contents Page(s)
Task 1 Nature & Importance of Operational Management 3 - 6
Task 2 Operations Management & Strategic Planning 7 - 8
Task 3 Production Process 9
Task 4 Techniques/Operational Plan 10 - 12
Bibliography 13
Task 1
Introduction:
McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries. Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald; in 1948 they reorganized their business as a hamburger stand using production line principles. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth.
A McDonald's restaurant is operated by either by a franchisee, an affiliate, or the corporation itself. The corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27 percent over the three years ending in 2007 to $22.8 billion, and 9 percent growth in operating income to......

...Zhenni Lou
Option 7:Research Assignment for Operation Management
Understanding Apple Company’s value chain
This main purpose for this article is to analyze Apple Company’s value chain. From this article, some professional knowledge about value chain in operation management can be learned. And the analyze will be deeply discussed in operation structure. In the textbook, operation structure is defined as the configurations of resources in the value chain including elements of suppliers, factories, distributors, sales offices, design and so on. (Collier and Evans, OM) The following articles will analyze specifically how these elements are operated in Apple Company from the view of Value chain style and value chain model.
We can not deny that Apple Company is familiar with everybody in the modern society. In 1976, Apple Company was set up by selling computers. They expanded their business to other industries especially in music player and phone during the development of the company in last 11 years. (Apple company) Nowadays, Apple is the dominant marketing leaders in each field they joined in. The most significant factor of these excellent performances is the attitude to the value chain management. The obvious proof for this conclusion is the last sentence of the article as follow: Apple plans to double spending on its supply chain, to $7.1 billion,......

... objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
The description above recognizes a significant role for internal auditing that is based on the activities in which it has a defined expertise. At the same time, it recognizes that there are many different constituencies (customers) for internal audit services. For example the definition clearly envisions important customers as: Senior management, Operational management, Audit committees and the board of directors.
Conflicts that may arrive in serving these different constituents include operational management may be interested only in advice that will improve the efficiency or effectiveness of operations. Senior management may be interested in activities that may directly affect the bottom line, or potentially their bonuses. On the other hand the audit committee may be more concerned with managing their own risk and request a greater focus on risk management and control activities.
Audit committees are primarily interested in assurance services regarding risk and control. Operational management is primarily concerned with consultative help regarding the efficiency of operations and adequacy of control mechanisms. Senior management is concerned with both consultative advice...

...2012-2013
PAWNSHOPS AND BEHAVIORAL ECONOMICS
193
PAWNSHOPS, BEHAVIORAL ECONOMICS, AND SELF-REGULATION SUSAN PAYNE CARTER* AND PAIGE MARTA SKIBA** I. Introduction
Pawnbroking is the oldest source of credit.1 There is growing public interest in day-to-day pawnbroking operations, as evidenced by the popularity of reality shows such as “Pawn Stars” and “Hardcore Pawn.”2 Television viewers’ curiosity about an old credit institution may be due to the fact that 7% of all U.S. households have used pawn credit.3 Although pawnshops predate biblical times, researchers know surprisingly little about this ancient form of banking and its customers.4 We fill this gap by documenting detailed information on pawnshop loan repayment and default, and by discussing how pawnshop borrowers’ behavior is consistent with various behavioral economics phenomena. Pawnshop loans are small, short-term, collateralized loans typically used by low-income consumers. The borrower leaves a possession, or “pledge,” as collateral in exchange for a loan, typically of $75–$100.5 Interest rates vary by state and range from 2
Assistant Professor, Office of Economic and Manpower Analysis, United States Military Academy. susan.carter@usma.edu. The views expressed in this paper do not necessarily represent those of the United States Military Academy, the United States Army, or the Department of Defense. ** Associate Professor of Law, Vanderbilt......

...Introduction
It is said that Pawnbroking is the oldest source of credit. (Caskey, 1994) Pawnshop loans are small, short-term, collateralized loans typically used by low-income consumers. Despite their small principal, however, pawnshop loans are an important tool that many customers use to manage their monthly finances during financial shortfalls. (Carter and Skiba, 2012)
In the Philippines, Pawnshop is one of the financial service providers (FSP) that are helping to increase the access to financial services of underserved and unserved. For many Filipinos, pawning is the most convenient way to raise money, easier than securing a bank loan. In the Bangko Sentral ng Pilipinas Report on the State of the Financial Inclusion in the Philippines in 2011, the Banking sector is accounted for more than 80 percent of the total resources of the financial system. This means that the 20 percent are shared by other service providers such as pawnshops, money changers, remittance agents and FX dealers. Some municipalities in the Philippines have no banking presence but have access to pawnshops. While pawnbroking is the main business activity of pawnshops, nowadays many pawnshops are engaging into other auxiliary businesses such as money changing, remittance facilitation, foreign exchange dealership, and bills payment facilitation. Moreover, few pawnshops are offering cash in-cash out centers and offer mobile banking services.
Financial economists have produced a large number of......

...factors that affect the success Of two selected pawnshops in metro manila: an assessment
A Thesis Proposal
Presented to
The Faculty of the Business Administration,
University of the East – Manila
In Partial Fulfillment for the Degree of
Bachelor of Science in Business Administration
Major in Financial Management
Submitted by
Juatco, Martian Lanz Gary A.
Mingaracal, Alvin M.
Pediengco, Alelie Krizza D.
Perey, Christine Mae R.
Summer
S.Y. 2014- 2015
CHAPTER I
The Problem and Its Background
Introduction
Pawnshops are in the business of lending money on the security of pledged goods left in pawn, or in the business of purchasing tangible personal property to be left in pawn on the condition that it may be redeemed or repurchased by the seller for a fixed price within a fixed period of time. A "pawn transaction" does not include the pledge to, or the purchase by, a pawnbroker of real or personal property from a customer followed by the sale or the leasing of that property back to the customer in the same or a related transaction (definitions.uslegal).
State and local laws regulate pawnshops. Pawnshops may be required to be licensed and regulations often require certain standards of record keeping and pawnshop fees charges to be followed. Regulations may require a minimum age of persons seeking to pawn items and may prevent the offering of insurance for pawned items. Pawnshops may also be required to consult police......

...By 1812 AD there were at least 20, 000 pawnshops in China. In the 1970’s, the Chairman Mao and his Red Army eliminated all the pawnshops along with other private enterprises. Recently, pawnshops started making a comeback, filling the gap in their national banking system, lending money to people who earn enough to have bank accounts. Pawnshops were so respected by the Chinese population that they named, Kwan Tai, one of their Gods, the “Patron God of Pawnshops”.
The word “Pawn” comes from the word “PATINUM” which means cloth or clothing. During the early centuries, in Europe, when people borrowed money, the collateral they used was their clothes. Pawn broking was in existence in the ancient Roman and Grecian civilizations. The first formal pawnshop businesses were in China. They originated in Buddhist monasteries, where the interest was usually at 3% or less.
Pawn broking is one of the oldest credit means in the Philippines. Many people believed that the Spanish friars have introduced it when Philippines was stilled ruled by the Spaniards.
For many Filipinos, pawning jewelry at a neighborhood pawnshop has been most common and quickest way to address an urgent need for relatively small amounts of cash. Filipinos patronize pawnshops as one of the alternative source of credit and with the increasing numbers of pawners people should be aware of the pawn broking transactions, auction sale and some pertinent information that will reduce the risk of pawning and buying of......

...various operations planning and control issues that company faces.
Task 1- (A.C.:3.1.) Explain linear programming and it uses.
According to slack et all (2013 ) linear programming is a technique that is useful for allocating scarce resources among competing demands. As has been argued Slack et all (2013) those resources may be money, time, or materials but also the limitations are known as constraints.Shim & Siegel ( 1999) argued that the linear programming was originated during the early 1950s by Prof.G.B Dantzig which it was called as an operation research technique.
According to Chary (2004) the main basic problem solved by Linear Programming is that of optimising either total cost or profit. However as has been argued Chary(2004) it takes into considerations the limitations or constraints on the availability or usage of different resources. Also Shim & Siegel (1999) agreed that this technique could be applied in different situations: long term planning, production planning, decision-making, marketing , quality control decisions, material utilisation decisions etc.
Slack et all (2010) suggested that linear programming consists in two important ingredients:
Objective function: the organization must provide the specific objectives to be achieved
Constraints: Constraints are in the form of restrictions on the availability of resources or meeting the minimum requirements.
Applications LP can be use to to solve some problems in operations......

...1
INTRODUCTION TO PRODUCTION
AND OPERATION MANAGEMENT
CHAPTER OUTLINE
1.1 Introduction
1.2 Historical Evolution of Production and
Operations Management
1.3
1.4
1.5
1.6
1.1
1.7 Operations Management
1.8 Managing Global Operations
1.9 Scope of Production and Operations
Management
• Exercises
• Skill Development
• Caselet
Concept of Production
Production System
Production Management
Operating System
INTRODUCTION
Production/operations management is the process, which combines and transforms various
resources used in the production/operations subsystem of the organization into value added
product/services in a controlled manner as per the policies of the organization. Therefore, it is
that part of an organization, which is concerned with the transformation of a range of inputs into
the required (products/services) having the requisite quality level.
The set of interrelated management activities, which are involved in manufacturing certain
products, is called as production management. If the same concept is extended to services
management, then the corresponding set of management activities is called as operations
management.
1.2
HISTORICAL EVOLUTION OF PRODUCTION AND OPERATIONS MANAGEMENT
For over two centuries operations and production management has been recognised as an
important factor in a country’s economic growth.
1
PRODUCTION AND OPERATIONS MANAGEMENT
The traditional view of manufacturing management began in......

...0000000232.RTF
THESIS ABSTRACT
Title : THE PAWNSHOP INDUSTRY IN METRO LEGAZPI
Author : SURATOS, EMMA A.
Degree : ?
Year : 2000
Location : AQ
This study looked into the pawnshop industry in Metro Legazpi in order to recommend measures to improve its operations.
Specifically, it answered the following questions:
1. What is the profile of pawnshop industry in Metro Legazpi?
2. What is the current state of operation of the pawnshop industry in Metro Legazpi?
3. What are the problems encountered by the owners/operators and the consequent solutions offered to address them?
Scope and Coverage
The study is concentrated on the operations of all the 26 pawnshops fully operating in Metro Legazpi. By counting the head office and branches as one, the 26 offices were consolidated into 12. Three new pawnshops that have complied with the requirements but are still waiting for their registration certificates brought the total respondents to fifteen.
Registered pawnshops in province of Albay but located outside Metro Legazpi were not included in the list of respondents. Financial condition, management practices, and the clients' perspective were likewise not considered in the study.
Sources of Data
The primary source of data was the information generated through the survey questionnaires distributed to the owners and staff of the different pawnshops in Metro Legazpi. The secondary source of data came from the files and records......

...What is a pawnshop?
The pawnshop, consist of many intriguing parts of the entrepreneurial spirit, finance, sales, and money. The main reason a pawn shop is in existence is for helping the people who could not otherwise find or secure a loan for their needs at the time. Banks will loan money, but people with collateral that is not substantial or credit that is poor stand little chance of getting a bank loan, or securing a small cash loan for their needs at the time, this is where a pawn shop comes into play, the shop will loan based on the item being used for collateral and the sum of money needed, generally the loan period will vary based on the state that regulates the pawn shop. The customer has the choice of either selling the item or securing the loan for a period with interest being paid for the amount of time used, if the customer decides not to pick up the loan, the shop will then sell the item for an amount based on a used marketable price. The pawn shops deal in a win-win of high finance, the loans being given are high risk at times therefore the usury rate on the loans are generally at high interest amounts. Once the collateral has been fore-fitted by the customer it becomes the property of the pawnshop to sell to recoup their loan back plus a profit on top of the lost interest and this creates the revenue stream from sales....